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Target and Kmart are engaging into the following one-shot game: if Target advertises and Kmart does not, Target will make $20 million in profits and Kmart will make $6 million. If Kmart advertises and Target does not, Target will make $2 million and Kmart will make $6 million. If Target advertises and Kmart advertises, each firm earns $10 million. If neither firm advertises, Kmart will make $8 million and Target will make $4 million.
a) Write the payoff matrix for the above game.
b) Does Target have a dominant strategy?
c) Does Kmart have a dominant strategy?
d) What is the Nash equilibrium for the one-shot game?
Estimate the b coefficints of the non-linear regression and do a statistical analysis of the coefficients and what is the implication of the non-liniear regerssion to MPC?
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If the demand for money becomes more insensitive to changes in the interest rate, equilibrium in the money sector will have to be restored mostly through changes in income. This implies a flat LM-curve.” Comment on this statement.
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When Wal-Mart locates in a smaller town, often the local retailers (e.g., hardware, clothing, and appliance stores) are unable to successfully compete and are driven out of business.
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Show the relationship between EV, CV, and consumer surplus using compensated and uncompensated demand curves. If you your income is $ 1million,you spend $100 on good 1, and income elasticity was 0.02, does it matter whether you use EV, CV, or consu..
A firm has $2,200,000 in sales, a Lerner index of 0.61, and a marginal cost of $50, and competes against 900 other firms in its relevant market.
Value management (VM) is the application of value methodologies with the purpose of improving organizational effectiveness. Value management is made up of five subprocesses: sensemaking, ideation, elaboration, choice
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